Ok so here's what I got from all of your replies.
Sonys mistakes were
-$599 launch price, sold at a loss for Sony.
-Blu-Ray wasn't well known and not a selling point for most consumers
-Bad/or not enough marketing
-The Wii was a surprising hit + the Xbox 360 was a direct competitor with the PS3
-360 launched a whole year earlier than PS3, at a lower price stealing the PS2s hardcore demographic
-Wii launched the same month(?) as PS3 at a much lower price point, stealing the PS2s casual demographic







